New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCE
Chapter IX - Procedural Regulations
Part 2397 - Electronic Funds Transfer Program For Certain Taxpayers Remitting Taxes Under And Pursuant To The Authority Of Articles 12-a, 13-a, 28 And 29 Of The Tax Law
Section 2397.2 - Participating taxpayer

Universal Citation: 20 NY Comp Codes Rules and Regs § 2397.2

Current through Register Vol. 46, No. 12, March 20, 2024

(a) General rules.

(1)

(i) If a taxpayer is liable during the applicable look-back period for more than $500,000 of State and local sales and compensating use taxes imposed by article 28 and pursuant to the authority of article 29 of the Tax Law (where such taxes are administered by the department), the taxpayer is required to participate in the program.

(ii) If a taxpayer is liable during the applicable look-back period for more than $5,000,000 of the prepaid State and local sales and compensating use taxes imposed on motor fuel and diesel motor fuel by section 1102 of the Tax Law, the taxpayer is required to participate in the program.

(iii) If a taxpayer is liable during the applicable look-back period for more than $5,000,000 of the taxes on motor fuel and diesel motor fuel imposed by and pursuant to the authority of article 12-A of the Tax Law and the tax on petroleum businesses imposed by article 13-A of such law (but excluding those taxes imposed by section 301-h of article 13-A), the taxpayer is required to participate in the program.

(2) A taxpayer shall be required to participate in the program only with respect to taxes for which the applicable dollar threshold prescribed in subparagraphs (i), (ii) and (iii) of paragraph (1) of this subdivision has been met. In determining whether such applicable dollar threshold has been met, the taxes described in subparagraphs (i), (ii) and (iii) of paragraph (1) of this subdivision shall not be aggregated; however, the taxes described within each of such subparagraphs shall be aggregated.

(b) Hardship. A taxpayer may, within 40 calendar days of the postmark date of the notice informing the taxpayer of its required participation in the program (see subdivision [b] of section 2397.3 of this Part), or after having already enrolled in the program, apply to the department for a hardship exemption using a form prescribed by the department for such purpose. To be granted a hardship exemption, the taxpayer must demonstrate that the criteria set forth in paragraph (4) of subdivision (b) of section 10 of the Tax Law, as applicable, have been met. The department shall advise the taxpayer of it's determination within 14 calendar days of receipt of the taxpayer's completed application.

(c) When a taxpayer is required to pay prepaid sales tax on cigarettes during the look-back period used to determine program eligibility, only the amount of sales tax on cigarettes for which a cigarette retailer is liable will be included in its total State and local sales and compensating use tax liability used to determine mandatory participation in the program under subparagraph (a)(1)(i) of this section.

(d) Voluntary participation.

(1) Any taxpayer not required to participate in the program, but who is otherwise required to remit any of the taxes specified in paragraph (1) of subdivision (a) of this section, may, at any time, submit a request to the department for permission to participate in such program on a voluntary basis.

(2) Any taxpayer described in paragraph (1) of this subdivision shall be granted permission to participate in the program unless the department determines that the administrative costs associated with accepting new enrollees into the program (including, but not limited to, increasing systems capacities, adding depository bank resources and adding program specialists within the department) outweigh the revenue and tax administration benefits associated with payment by EFT or certified check.

(3)

(i) Within 30 calendar days after receipt of the completed request, the department shall notify the taxpayer of the decision. If the department grants the taxpayer permission to voluntarily participate, the department shall make available all the information and instructions necessary to ensure successful participation in the program.

(ii) The department may limit the selection of payment options available to voluntary participants in the program. If the department limits the selection of options, it will inform taxpayers during the enrollment process about which payment options are available. (See section 2397.4 of this Part for more information about payment options.)

(4) Duration of participation.

(i) A taxpayer accepted to voluntarily participate in the program shall be required to continue in the program through at least the end of the applicable program year unless otherwise notified by the department.

(ii)

(a) No later than August 21st, if in writing, or August 31st, if online, of each year, a taxpayer voluntarily participating in the program may notify the department that it no longer elects to participate in the program beyond the end of the applicable program year. The department shall advise the taxpayer of whether the notification was timely made. If such notification is not timely made, a taxpayer voluntarily participating in the program must continue to participate in the program for the upcoming program year.

(b) Notwithstanding the rules specified in clause (a) of this subparagraph and in subparagraph (i) of this paragraph, a taxpayer may request release from voluntary participation in the program at any time. To be granted such release, the taxpayer must demonstrate to the department that continuation of its voluntary participation will result in hardship to such taxpayer. If the request is granted, the department shall advise the taxpayer, within 30 calendar days of receipt of the completed request, of the date for its final payment by EFT or certified check.

(iii) The department may, at any time after enrollment and on 30 business days' notice, advise the taxpayer that it will no longer be permitted to participate in the program on a voluntary basis.

(5) The provisions of this Part shall, except as otherwise expressly provided, apply to all taxpayers voluntarily participating in the program.

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